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Old Auto Lease reporting as OK every once in a while so the Date of Last Activity is a lot more recent than it should be.


mohctp
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Almost 10 years ago I leased a personal automobile.  I was slow to pay some payments, and at the end of the lease returned the automobile to the dealership with a balance left on the lease of a few thousand dollars.

 

The last payment I made was over 5 years ago, my understanding is this should be the Date of Last Activity.

 

I am looking at paper copies of my credit report and noticed that they are reporting this as 60 Days past due for the last 2 years, with an OK thrown in there every once in a while.  Because of this my credit report shows that the account should come off of my credit report 7 years after the last OK date.  The last OK date is just a few months old, but I haven't talked to them or made a payment for over 5 years.

 

What's the best way to handle this?  I think that this is currently dragging down my credit, and it won't come off my credit for a lot longer than it should.

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22 minutes ago, mohctp said:

Almost 10 years ago I leased a personal automobile.  I was slow to pay some payments, and at the end of the lease returned the automobile to the dealership with a balance left on the lease of a few thousand dollars.

 

The last payment I made was over 5 years ago, my understanding is this should be the Date of Last Activity.

 

I am looking at paper copies of my credit report and noticed that they are reporting this as 60 Days past due for the last 2 years, with an OK thrown in there every once in a while.  Because of this my credit report shows that the account should come off of my credit report 7 years after the last OK date.  The last OK date is just a few months old, but I haven't talked to them or made a payment for over 5 years.

 

What's the best way to handle this?  I think that this is currently dragging down my credit, and it won't come off my credit for a lot longer than it should.

who is reporting it?

 

you need to determine the DOFD not the DOLA.

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Thanks for your response.  This is on TU / EX / EQ

 

I want to make sure I'm accurate, so if the DOFD is the date a consumer first becomes late, never brings the account current (after googling)

 

I made my last payment 5+ years ago and since then it has continued to be late and never brought current (no contact with the bank, no promises to pay, no payments, no acknowledging that it is a valid debt).  However occasionally(in the last 2 years) they report that the account is current every few months, for one month, and then late again.  Therefore the date that this account will be removed continues to shift forward into the future because the DOFD continues to get reset by those occasional "on time" payments they are reporting, that never happened.

 

It appears the bank is reporting this account as "Open."

 

It is past the Statute of Limitations as well.

 

From some additional googling, it appears this is called "Re-Aging"

 

Hope this answers your question, and helps.

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1 hour ago, mohctp said:

I am looking at paper copies of my credit report and noticed that they are reporting this as 60 Days past due for the last 2 years, with an OK thrown in there every once in a while.  Because of this my credit report shows that the account should come off of my credit report 7 years after the last OK date.  The last OK date is just a few months old, but I haven't talked to them or made a payment for over 5 years.

You are correct that the OKs thrown in there are a problem. This could be intentional to "poison" your reports or it could be a system error on the creditor's part. 

 

First thing you should do is file a dispute in writing, CMRRR, disputing the payment history as inaccurate. Hopefully that will cause them to update it to remove the erroneous OKs and then the new report will show you the updated fall off date which should be 7 years from the last actual OK month.

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4 hours ago, mohctp said:

Thanks for your response.  This is on TU / EX / EQ

 

I want to make sure I'm accurate, so if the DOFD is the date a consumer first becomes late, never brings the account current (after googling)

 

I made my last payment 5+ years ago and since then it has continued to be late and never brought current (no contact with the bank, no promises to pay, no payments, no acknowledging that it is a valid debt).  However occasionally(in the last 2 years) they report that the account is current every few months, for one month, and then late again.  Therefore the date that this account will be removed continues to shift forward into the future because the DOFD continues to get reset by those occasional "on time" payments they are reporting, that never happened.

 

It appears the bank is reporting this account as "Open."

 

It is past the Statute of Limitations as well.

 

From some additional googling, it appears this is called "Re-Aging"

 

Hope this answers your question, and helps.

I'm curious what bank is reporting like this. Sounds like a predatory lender. If so your state laws may be worth looking into.

 

 

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5 hours ago, mohctp said:

and at the end of the lease returned the automobile to the dealership with a balance left on the lease of a few thousand dollars.

Can you explain this statement?  If you were at the end of the lease, had you made all the scheduled payments when you turned in the vehicle to the dealership?  What was left for them to assess charges on?

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OP - you have several issues here wrapped around a dead fish that is stinking up the whole thing. You need to know DOLA as well as DOFD, but for different reasons.

 

You need DOFD for tracking the 7 year reporting period under FCRA (actually it is 7 years 6 months because the Feds give the creditor 6 months to start the FCRA clock). You need DOLA (actually, Date of Last Payment, DOLP) for determining when your State Statute of Limitations for suing you expires. Most States are 6 years and that clock starts when the first payment is missed, and in many states the date re-sets with each payment made after the account went delinquent).

 

Your rights under Federal Law will rest on Fair Credit Reporting Act (FCRA) and possibly Fair Debt Collection Practices Act (FDCPA). If you live in California you have the State Rosenthal Act and if you live in New York City you have the City Department of Consumer Affairs regulations backing you. You don't want to rock the boat until the Collection Statute has expired. That strips the creditor of their right to sue you and get a judgment for the defaulted lease. FCRA and FDCPA have a 1-year SOL to sue under them, but each violation carries its own separate SOL, so while an occasional TL showing the account current may seem innocuous, it actually represents a separate FCRA violation of deliberately reporting false and inaccurate information, and "poisoning" your credit file as well as the FCRA violation of "re-aging" the delinquency, and, if the creditor is a Debt Collector as defined in FDCPA, it also represents a violation of the prohibition against false and  misleading representations. It is interesting that a POSITIVE TL entry could trigger a FCRA and/or FDCPA lawsuit, but ANY false statement rises to that position.

 

Hegemony has asked you a couple of times who is doing this reporting. I am now asking the same question, so that we can all help you with not just the FCRA action, but the possible FDCPA action also. I am sure your creditor would just LOVE to get sued twice for a debt they are powerless to counter-sue you over.

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The issue with the tradeline is that it doesn't reflect an account default, but instead is being reported as merely having "late payments".  As such, no DOFD is established per the reporting.

 

Yes, it would appear that the creditor is using this strategy to keep the adverse tradeline on your report.

 

This is a clear violation of the FCRA.  I trust others will advise on how to pursue legal action and statutory damages.

For the best advice, it would be most helpful to see the tradeline detail, with any identifying information blacked out.

 

 

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23 hours ago, MarvBear said:

Can you explain this statement?  If you were at the end of the lease, had you made all the scheduled payments when you turned in the vehicle to the dealership?  What was left for them to assess charges on?

It sounds like the OP was behind on payments and turned in the vehicle without ever catching up and finishing out the lease payments.

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On 11/24/2022 at 6:56 AM, MarvBear said:

I wouldn't know.  The Original Poster has not returned to answer my question.

 

On 11/24/2022 at 7:10 PM, hdporter said:

 

Hate it when that happens!  (really makes you wonder ...)

I just got back in town from a holiday trip.

 

I do not want to restart the statute of limitations, therefore I'm very concerned about the words I use online.  It is from a major auto brand.

 

 

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17 hours ago, mohctp said:

I just got back in town from a holiday trip.

 

I do not want to restart the statute of limitations, therefore I'm very concerned about the words I use online.  It is from a major auto brand.

 

 

Don't want to re-start the SOL? That's easy - just ignore them - no calls, no letters, no payments. Other than try to re-age the account (which they seem to be doing regularly) there is nothing a creditor can do that would re-start the SOL - if there was they would all be doing it all the time. Filing a FCRA and/or FDCPA suit against them does not re-start the SOL.

Edited by Flyingifr
remove excess lines
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